Singapore employment growth picks up in Q3, but retrenchments continue to rise

SINGAPORE: Total employment grew in the third quarter of 2026, but retrenchments also hit a nearly six-year high, according to advance labour market data released by the Ministry of Manpower (MOM) on Friday (Oct 30).Singapore's labour market expanded for a 20th consecutive quarter in Q3, with total employment growing by 27,700 compared with the 11,400 in the preceding quarter and 25,100 during the same period last year.Resident employment growth continued to be mainly supported by essential and public services, while growth in outward-oriented sectors remained subdued amid global economic uncertainty, MOM said.Employment growth in the third quarter was led primarily by non-residents, particularly in the construction and manufacturing sectors.The number of retrenchments rose to 4,800 in Q3, up from 4,620 in the previous quarter. This is the highest quarterly figure seen since Q4 2020, when 5,640 workers were retrenched.The incidence of retrenchment, however, remained at 2 per 1,000 employees in Q3.Retrenchments were mainly driven by business reorganisation, and remained elevated in selected outward-oriented sectors, MOM saidMeanwhile, resident and citizen unemployment rates edged up slightly in September to 3 per cent and 3.1 per cent, respectively. This is up from 2.9 per cent and 3 per cent in August.The overall unemployment rate remained low and unchanged at 2 per cent.The full labour market report for the third quarter will be released in mid-December.LABOUR MARKET OUTLOOKForward-looking indicators were mixed in September, MOM noted.The share of firms expecting to hire over the next three months rose from 30.5 per cent in August to 42.3 per cent in September, while the share of companies expecting to raise wages increased from 16.9 per cent to 19.9 per cent in the same period."However, both remained below July’s levels, suggesting that employers remained cautious about hiring and wage increases amid continued uncertainty," MOM said.The share of firms expecting to retrench also edged up to 3.1 per cent in September from 2.8 per cent in August."This increase, alongside higher actual retrenchments, points to emerging weaknesses in parts of the labour market that warrant close monitoring," the ministry said."Against a more uncertain global outlook and rapid technological change, companies will need to keep adapting and investing in their workforce, while workers will need to keep their skills relevant," it added.Employers can make use of existing schemes, such as the career conversion programmes and Mid-Career Pathways Programme, to reskill and upskill their workers.Workers are encouraged to take proactive steps to improve their employability and access better job opportunities through schemes such as Career Health SG. They can also use career coaching and guidance services provided by the Skills and Workforce Development Agency and NTUC's Employment and Employability Institute, as well as join SkillsFuture training programmes.Fresh graduates facing difficulties finding employment can utilise the Graduate Industry Traineeships, or GRIT, scheme as an alternative entry point into the workforce that enables them to gain industry-relevant skills and experience, MOM said.Eligible involuntarily unemployed individuals can receive temporary financial support of up to S$6,000 (US$4,690) over six months via the SkillsFuture Jobseeker Support scheme while they are looking for jobs, the ministry added.